Lower gold prices coupled with higher operating costs at its mines produced a loss for MinVen Gold (TSE) in the 9-month period ended Sept. 30. MinVen reported a 9-month loss of $3.8 million (13 cents per share) on revenue of $32.7 million, compared with a profit of $193,826 (1 cents per share) on revenue of $34.7 million in the first nine months of 1989.
The company’s 9-month gold production fell to 69,543 oz., down from 71,745 oz. in the year-earlier period.
President James Anderson said the 9-month results were affected by lower gold prices and higher costs at several of the company’s mines during the early part of the year.
But, third-quarter income and cash flow results have improved as the company overcomes operating problems at its Gilt Edge mine, and progresses in the startup of its Golden Reward mine.
Consolidated cash flow from operations amounted to $3.4 million during the third quarter, compared with $4.6 million in the comparable period of 1989.
For the three months ended Sept. 30, net earnings were $263,340 (1 cents per share) on revenue of $14 million, compared with $1.11 million (5 cents per share) on revenue of $14.8 million.
Consolidated revenues do not include proceeds of $1.6 million realized in the sale of 3,421 oz. gold and 15,000 oz. silver which reduced the cost of developing the Golden Reward mine into production.
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